BUSINESS, INNOVATION AND SKILLS

Innovation and Research Strategy

David Willetts: The UK has a global reputation for innovation and research and our future prosperity rests on our ability to continue to compete in a global economy. Innovation and research is a key priority for this Government, and the Secretary of State and I are today publishing the Government’s “Innovation and Research Strategy for Growth” which seeks to build on our existing strengths. A copy of the strategy is being placed in the House Library.
	Our universities, research councils and businesses are national assets that form the foundation of the UK’s future competitiveness. However, if we are to realise our vision for the UK’s future we need to strengthen our innovative capability and encourage further investment in innovation.
	The Government have already made clear our commitment to the UK knowledge base by maintaining the annual £4.6 billion budget for science and research programmes with £150 million each year supporting university-business interaction. Going further, we intend to maximise the impact of our research base on economic growth and have announced £610 million to science capital investment projects since January 2011.
	We will improve incentives for companies to innovate, especially small and medium-sized enterprises. In addition to our successful changes to the SME research and development tax credit we will invest an additional £75 million to support small business innovation including additional funding for Smart grants that support SME research and development. We will implement a new innovation voucher programme enabling small businesses to engage with universities and the wider knowledge base.
	We will also support research innovation and collaboration overseas, focusing on innovation hot spots and high-growth economies, starting with China and India. We will make it a priority to secure greater European funding to support research and development by UK businesses.
	The coalition Government are putting innovation and research at the heart of their growth agenda through greater investment and increased collaboration, ensuring that the UK has a promising future.

Unlocking Growth in Cities

Greg Clark: The Government are today publishing “Unlocking Growth in Cities”, which describes a new framework for the relationship between our largest cities and central Government. In particular, the document sets out the terms for a system of “city deals”—binding
	agreements which enable cities to negotiate the devolution of specific powers, resources and responsibilities required to meet locally-determined economic and social objectives.
	The Government are committed to the decisive action required to restore confidence in our economy. This, above all, rests on the principle that sustained recovery and long-term prosperity can only be achieved through private sector growth. This will not occur in the abstract, but through the success of real businesses in real places—especially our cities which, together with their wider commuting areas, account for 74% of England’s population and 78% of English jobs.
	To achieve their full potential, our urban communities must be empowered to act in support of their local economies. It is widely recognised that, compared to their European counterparts, English cities have less influence over the key decisions that affect their competitiveness in national and international markets. Because power and influence over relevant policy making areas has been so heavily skewed towards Whitehall and Westminster, civic leaders have been forced to look upwards to central Government to resolve problems, rather than through direct engagement with existing and potential sources of private and voluntary sector investment and innovation.
	We are therefore committed to revitalising the role of city leadership through a radical shift in power, allowing cities to take on certain responsibilities and resources from Government wherever they can make the case that this would improve the efficiency and outcomes of public policy.
	The document sets out a series of indicative options for the transfers of control that could be considered as part of each deal making process. This list is not intended as a statement of policy or as an automatic entitlement for all cities, it is neither prescriptive nor exhaustive. Rather, the specifics of each city deal negotiation will be determined by city-led initiative and its conclusion dependent on the strength of the case presented. From the Government side, we will look for a clear economic rationale, a robust evidence base, an appropriate geography, the acceptance of a proportionate degree of risk and proper standards of governance, co-operation and accountability.
	Supported by the Cities Policy Unit in the Cabinet Office, and in partnership with the Department for Communities and Local Government and the Department for Business, Innovation and Skills, I will, as Minister for Cities, work closely with city leaders and with colleagues across Whitehall Departments to agree a series of city deals over the coming months. Our timings will reflect the needs and readiness of each city, but given the national imperative to boost economic growth, and the enthusiasm in our cities for moving this agenda forward, we intend to move at pace, agreeing the first wave of city deals by spring next year.
	Because of their size and economic importance, we are currently focusing on the largest cities in England. However, taking account of the lessons to be learned from this first wave, we will consider the case for extending the city deal process to other communities in due course.
	I have placed copies of “Unlocking Growth in Cities” in Libraries of both Houses.

TREASURY

Bank Levy Double Taxation Agreement (UK and Germany)

Mark Hoban: A double taxation agreement with Germany was signed on 7 December 2011 in relation to both countries’ bank levies. The text of the agreement has been deposited in the Libraries of both Houses and made available on HM Revenue and Customs’ website. The text will be annexed as a schedule to a Treasury Order and laid before the House of Commons in due course.

RDEL Revisions

Danny Alexander: The autumn statement announced that public sector pay awards will average 1 % for each of the two years following the end of the current pay freeze, and that departmental budgets will be adjusted in line with this policy.
	The pay policy will be applied to health, schools, and international development, but the savings will be recycled within existing budgets.
	Departmental resource DEL budgets (excluding depreciation) will adjusted by the following amounts:
	
		
			 £ million 
			  2012-13 2013-14 2014-15 
			 Education(1) -4 -25 -42 
			 Transport -6 -14 -14 
			 CLG Communities -3 -6 -6 
			 CLG Local Government(2) 0 -240 -497 
			 Business, Innovation and Skills -9 -19 -19 
			 Home Office(3) -14 -68 -135 
			 Justice 0 -43 -85 
			 Law Officers’ Departments 0 -4 -9 
			 Defence 0 -103 -197 
			 Foreign and Commonwealth Office 0 -3 -7 
			 Energy and Climate Change -1 -3 -3 
			 Environment Food and Rural Affairs -10 -22 -22 
			 Culture Media and Sport -4 -9 -9 
			 Work and Pensions -32 -72 -72 
			 Scotland -4 -23 -38 
			 Wales -2 -19 -35 
			 Northern Ireland -2 -10 -15 
			 HM Revenue and Customs 0 -24 -47 
			 HMT -1 -1 -1 
			 CO -2 -4 -4 
			 SIA 0 -11 -11 
			 Small and Independent Bodies 0 -4 -4 
			 Total(4) -95 -727 -1272 
			 (1) The budget for schools will be unaffected (2) Local Government DEL includes funding for fire and rescue authorities and some police funding (shared with the Home Office) (3) Home Office DEL includes some police funding (shared with local government) (4) The total DEL reductions are greater than the total managed expenditure (TME) savings scored in the autumn statement, because the TME savings take into account the costs of reduced pension contributions that result from lower pay growth 
		
	
	Reductions to budgets will be made immediately and will be reflected at the main estimate, which will go before Parliament next year.
	This represents an average reduction of approximately 1% of affected resource budgets in 2014-15.
	As a result of this reduction in departmental budgets, there will be a consequential Barnett reduction in the resource allocation to the Scottish Government, Welsh Government, and Northern Ireland Executive. However, the overall effect of the autumn statement will be a net increase in current budgets for the devolved Administrations. Scotland will see an increase of £69 million, Wales an increase of £22 million, and Northern Ireland an increase of £37 million over the spending review period as a result of the measures announced.
	Departments will have flexibility over how they implement the pay policy across their work forces, with pay review bodies and negotiating machinery playing their usual role.

COMMUNITIES AND LOCAL GOVERNMENT

Local Government Finance

Bob Neill: I am today publishing the Government’s formal proposals on distribution of formula grant to English local authorities for 2012-13. Total formula grant for 2012-13 will be £27.8 billion, of which redistributed business rates will be £23.1 billion, revenue support grant £477 million and police grant £4.2 billion.
	The 2010 spending review set out how the Government are tackling the deficit we have inherited from the last Administration and put the public finances back in order. Every bit of the public sector needs to do its bit to help pay off the deficit, including local government, which accounts for a quarter of all public spending. The settlements for 2011-12 and 2012-13 set out on 13 December 2010 sought to achieve fair and sustainable settlements for local government between different parts of the country—from urban to rural, north to south, metropolitan to shire.
	This settlement is supported by our extension of the successful council tax freeze scheme to a second year, building on the 2011-12 freeze offer taken up by all eligible councils. The offer being made to local authorities for 2012-13 is set out in the written statement of 14 November 2011, Official Report, column 27WS. Council tax more than doubled since 1997 and the freeze will offer real help to hard working families and once again save up to £72 compared to a 5% rise in council tax on top of this year’s saving of up to £72. All eligible authorities took up the offer of Government funding to freeze or reduce their council tax in 2011-12. By offering their local residents a council tax freeze again this year, it will offer real help now with the cost of living to local residents, including pensioners, private sector workers and public sector workers.
	The estimated yield from business rates in England will be £23.119 billion in 2012-13. Since this is greater than the formula grant control total for 2012-13 agreed
	at the spending review, the second year’s funding for authorities which froze or reduced their council tax in 2011-12 has been included in formula grant for this year. This increases the total amount included as formula grant for 2012-13 to £27.791 billion.
	The overall settlement is in keeping with that first proposed in February 2011. The sum of the provisional 2012-13 formula grant as at 7 February 2011 and the 2011-12 council tax freeze grant, therefore, form the allocations of formula grant for 2012-13. The council tax freeze grant allocations remain separately identifiable, and the subtotal given in the breakdown table for each authority is the same as the provisional 2012-13 formula grant allocations as at 7 February 2011 (my written statement of 7 February 2011, Official Report, column 1WS). This is in line with the Government’s policy on multi year settlements, which is that we will not change the provisional proposals first published in February 2011 except in entirely exceptional circumstances.
	We have continued to focus resources in a way that gives more weight to those parts of the country with the highest levels of need. These are often the areas which are most reliant on central Government grant. As in 2011-12, in calculating the grant distributions we have acted to insulate them by distributing less money on a per capita basis, and giving more weight to the levels of need within different areas. We have also grouped councils into four bands and set different “floors” for their grant reductions. This is a fairer and more progressive system of calculating grant than before.
	This year’s settlement means that the average spending power reduction for 2012-13 is expected to be limited to 3.3% (or £75 per household), less than last year’s comparable figure of 4.5%. We have also again made sure that no council will see their overall spending power fall by more than 8.8%. To fund this, I have transferred £20 million of my Department’s budget to local government for 2012-13. This additional funding will smooth the impact of this year’s settlement. Councils will have an average spending power of £2,186 per household at their disposal in 2012-13. Reflecting the fairness of the settlement, the average spending power per household in Hackney will be £3,050 compared with £1,537 in Windsor and Maidenhead.
	Many councils have successfully shown that they can deliver significant efficiencies but there is still more to be done. Smarter procurement, reducing management and support services costs, greater transparency to cut waste, sharing services and tackling fraud can all deliver significant savings to help protect front-line services and taxpayers’ interests. And to support councils the Localism Act will trigger the biggest transfer of power in a generation to local communities.
	Moreover, I would note that in the coming year, local government will have access to new financial measures including over £430 million of funding under new homes bonus, up to a £1 billion in community infrastructure levy, and access to the £2.4 billion regional growth fund and the £500 million growing places fund (through their local enterprise partnerships).
	The Localism Act also includes powers to abolish Whitehall capping in England and instead allow local residents to veto excessive council tax rises. I can confirm that we are moving ahead with introducing arrangements for council tax referendums if an authority sets a council tax which exceeds principles endorsed by Parliament
	(i.e. is “excessive”). These provisions will be implemented for 2012-13 and I am also today giving an indication of the principles I am minded to propose for that year. I propose that local authorities will be required to seek the approval of their local electorate in a referendum if, compared with 2011-12, they set council tax increases that exceed:
	3.5% for most principal authorities;
	3.75% for the City of London;
	4% for the Greater London Authority, police authorities, and single purpose fire and rescue authorities.
	I am proposing that no equivalent principles will apply for town and parish councils for 2012-13, although they may in future years.
	Of course, should all eligible local authorities take up the new council tax freeze offer for 2012-13 there will be no need for council tax referendums next year. After considering any representations from authorities, I will set out the final principles in a report to the House and seek approval for these in parallel with the final report on the 2012-13 local government finance settlement.
	Any town hall that turns down the council tax freeze offer and tries to hike council tax bills unreasonably will now have to ask at the ballot box whether hard-working families and pensioners are willing to shoulder an increase in their cost of living.
	Finally, this is a transitional settlement where we have set out details of the settlement for two years, striking a balance between the need to help councils plan for the future and the need to reform the system. Ministers believe the current system we have inherited from the last administration is broken. As the National Audit Office has observed, the formula grant system is
	“highly complex and not transparent”
	and
	“the complexity of the four-block model... [serves to] obscure the link between needs, resources and funding”
	(NAO, “Formula funding of local public services”, July 2011, HC 1090, p.26).
	We have recently consulted on proposals that would lead to fundamental reform to the funding of local government, moving away from the existing arrangements where there is no connection between the health of the local economy and the funding of the local authority. Our proposals will provide councils with greater control over their funding, developing a direct link between the growth of businesses in their area, and the revenues available to them. These proposals, which we intend to introduce from 2013-14, will deliver direct financial incentives for authorities that promote economic growth and help many councils break free from dependency on grants from central Government. The Government will set out their response to the consultation proposals to the House shortly.
	Today also marks the start of a period of statutory consultation with local government on formula grant distribution and I welcome their responses. Consultation closes on 16 January 2012.
	I shall be making available full supporting information on the Department for Communities and Local Government website at:
	http://www.local.communities.gov.uk/finance/1213/grant.htm.
	This includes a “Plain English Guide to the Local Government Finance Settlement” for 2012-13 which I hope will be helpful in cutting through the jargon and the sheer complexity of the current system.
	I have placed copies of the consultation paper and the Plain English Guide, as well as details of the location of other supporting material, in the Vote Office and the Library of the House.

DEFENCE

Libya (Operation Ellamy)

Philip Hammond: In a written statement on 23 June 2011, Official Report, column 24WS, my predecessor the right hon. Member for North Somerset (Dr Fox) informed the House that the costs of Operation Ellamy—the United Kingdom’s contribution to coalition operations in Libya in support of United Nations Security Council Resolution 1973—for the six months from mid-March to mid-September were estimated to be £120 million. In addition, an estimated cost of replenishing munitions of up to £140 million.
	On 12 October 2011, Official Report, column 30WS, my predecessor revised the figure for the whole operation, from mid-March to mid-December, to £160 million with an estimate of the cost of replenishing munitions used in Libya at £140 million.
	I have previously informed the House, on 14 November 2011, Official Report, column 568, that I would provide a final estimate of the cost of operations in Libya in early December. With operations now over we estimate that the net additional cost of Operation Ellamy will be £212 million. This estimate is made up of £145 million of operating costs, plus a further £67 million on the cost of replenishing munitions.
	As previously announced, the additional costs incurred by the Ministry of Defence on Operation Ellamy will be borne by the reserve, and will be in addition to the core defence budget. The fully audited cost of Operation Ellamy will be published in the Ministry of Defence’s annual report and accounts.

Submarine Service

Philip Hammond: I am pleased to inform the House that, following a review, women in the Royal Navy will be allowed to serve in submarines in the future.
	The decision follows an 18-month thorough analysis, which included a study of legal, operational, health, social, technical, and financial issues. Key to this was the naval service’s operational effectiveness now and in the future. This decision to allow women to serve in submarines will enable the Royal Navy to maximise the deployability of its talent pool.
	Recent medical research has shown that there are no risks to female health during normal submarine operations, so there are no medical reasons for excluding women from service in submarines, provided they are not pregnant. An independent peer review of this work concluded
	that, while there was no medical risk to women, there remains a risk to a foetus, which could emanate from the higher level of carbon dioxide in submarines in comparison to normal atmospheric conditions. There is no danger from radiation; the average annual dose of radiation accrued by Royal Navy submariners is actually less than the average annual background dose received by the general population of the UK (as submariners are not as frequently exposed to the sun). External legal counsel has advised that the scientific and medical evidence did not justify a ban on female submariners, but did require the exclusion of pregnant submariners.
	Female officers will be introduced first into the Vanguard class as soon as the policy and practical changes can be made, which is expected to be towards the end of 2013, with a small number of volunteers commencing submarine training in late 2012. The first female ratings to join a Vanguard class submarine will be recruited and trained from 2014, to join sometime in 2015. Women will also be permitted to serve in the Astute class, but probably not before 2016, when the necessary modifications to accommodation and facilities have been made.

EDUCATION

Academies Funding Transfer

Michael Gove: I am today publishing a consultation setting out my “minded to” decision in relation to the academies funding transfer for 2011-12 and 2012-13.
	The decision has been reached in consultation with the Secretary of State for Communities and Local Government and takes account of the responses received from local authorities to our consultation, issued in July 2011, about the basis for the decision.
	The decision takes account of the need to ensure that both academies and local authorities are funded fairly for the pupils they provide services for and the responsibilities which they hold. We have also considered how best we can ensure that the amount transferred better reflects the distribution of academies between local authorities.
	We plan to make changes from April 2012 to the methodology for calculating the level of the transfer to ensure that the amount transferred properly reflects the services which transfer to academies from their local authority. We will do this in two ways. First we will, in future, only take account of net expenditure on education services; and secondly, in areas where some responsibilities remain with the local authority, we will only use a proportion of spend in those areas to determine the amount to be transferred.
	To provide financial stability and certainty to local authorities we will cap the maximum amount to be transferred in 2012-13 at the level of the top-slice of formula grant which has been announced by the Department for Communities and Local Government. In addition we will make a calculation for each authority in January 2013 of the costs of the local authority element of local authority central spend equivalent grant (LACSEG) based on the number of academies in each authority. Where the costs calculated for an authority
	are below the amount top-sliced from formula grant, we will make a specific grant payment to that authority equivalent to the difference between the costs and the top-slice.
	To provide further certainty to local authorities we plan to make no changes to the previously announced top-slice for 2011-12 as we believe that taking action to redistribute costs at this stage in the financial year would cause unnecessary turmoil and instability.
	This arrangement, whilst providing financial certainty and stability to local authorities, means that the Government will continue to provide a considerable amount of double funding in this area. Given the poor value for money which this provides the taxpayer these arrangements should only be seen as transitional.
	The Government are committed to resolving the double funding of local authorities for services which devolve to academies permanently from 2013-14. As part of the local government resource review, we will explore removing the funding for these services from formula grant into the budget of the Department for Education. In this option, the Department would then a administer a grant to authorities and to academies proportionate to the number of pupils for which they are responsible according to a national rate. We plan to consult, jointly with the Department for Communities and Local Government, in 2012 on how we could put our commitment permanently to solve this issue into effect.
	I have placed copies of the consultation paper in the Vote Office and the House Libraries.

ENERGY AND CLIMATE CHANGE

New Nuclear Waste and Decommissioning Financing

Charles Hendry: I have today laid before Parliament Funded Decommissioning Programme (FDP) guidance for prospective operators of new nuclear power stations, together with the Government response to the December 2010 consultation on draft FDP guidance and a Waste Transfer Pricing Methodology for the disposal of higher activity waste from new nuclear power stations.
	The FDP guidance is statutory guidance that is provided for in the Energy Act 2008. It sets out the factors which may be appropriate for the Secretary of State to consider in deciding whether or not to approve an FDP, approve it with conditions, or modify an FDP which has already been approved. The guidance also sets out information about the preparation, content, modification and implementation of FDPs under the Energy Act.
	The Waste Transfer Pricing Methodology is a technical document the purpose of which is to set out how the Government will determine the price for the transfer of title to and liability for intermediate level waste and spent fuel from a new nuclear operator to the Government, for disposal in the geological disposal facility that the Government will construct for the disposal of legacy wastes. The methodology also provides some worked examples.
	I have placed an electronic copy of each document in the Libraries of the House. A copy of each document is also available on the DECC website at:
	http://www.decc.gov.uk/en/content/cms/meeting_ energy/nuclear/new/waste_costs/waste_costs.aspx.

ENVIRONMENT FOOD AND RURAL AFFAIRS

Water White Paper

Caroline Spelman: I am today laying before Parliament “Water for Life”, our water White Paper. This sets out the Government’s vision for securing sustainable and resilient water supplies through to 2050. It builds on the success of the sector since water privatisation, while recognising that population growth and climate change will place extra demands on a system designed to meet the needs of today, not tomorrow.
	The White Paper includes new scenarios of water availability in the 2050s. We need to start planning now to build flexibility and resilience into our water and sewerage infrastructure. Our approach must include better management of demand, but we will also need substantial new investment in infrastructure so we can capture more water and start to use the supplies we have more efficiently. We need to connect up our water system more effectively so that we can move supplies to areas where they are scarcer. We also need to ensure our drainage system can continue to operate effectively as infrastructure ages and pressure on capacity grows as the population increases.
	The White Paper sets out how we will take forward our commitment in the natural environment White Paper to long-term reform of the water abstraction regime. Reform is vital given the challenges of climate change and population growth and the lack of flexibility in the existing regime to deal with them. This will be a complex task, and we will work closely with abstractors and other stakeholders to deliver it. We plan to consult on proposals in 2013, and aim to introduce legislation subsequently, implementing the new regime fully by the mid to late 2020s.
	As well as looking to the future, we want to tackle the problems of pollution and over-abstraction affecting our rivers and wetlands currently. We can succeed only by drawing in the enthusiasm and knowledge of those with a clear stake in their local environment. We set out how Government and regulators are already starting to make this happen through new catchment pilots as well as a concerted effort to align advice, incentives and regulatory tools to address diffuse pollution and improve the environment. The White Paper explains how we will extrapolate from around 70 catchment scale pilot projects, and provide intensive support to 25 of them, as a precursor to rolling out this approach across the country.
	We know that affordability of water bills is a growing problem for householders, and we want to enable businesses to keep their costs down. We set out our new framework to enable water companies to target more help on those household customers who need it most by introducing company social tariffs.
	If bills are to be kept affordable over the longer term, and customers are to receive better service from their water companies, the regulatory framework governing the industry must change. The White Paper sets out how we are helping business customers and public bodies to reduce unnecessary costs by a package of deregulatory reforms to introduce more competition into the water industry. The reforms we propose will provide non-household customers with more choice and open up the market to new entrants, removing the anti-competitive barriers in the existing regime. Our proposals will increase the size of the market to include all non-household customers; remove a restrictive access price mechanism that makes it difficult for new entrants to compete on price and which unduly protects incumbents and replace it with a more transparent wholesale access price regime; increase opportunities for new entrants by extending the regime to cover sewerage services; and introduce changes to the existing regime for upstream competition to encourage new entrants and stimulate the market. We will work with the Scottish Government to enable a cross-border market in water and sewerage services.
	As a result, we expect business and public sector customers to receive a range of benefits from more customer-focused suppliers with an incentive to improve the services they offer, such as aggregated purchasing, discounts for direct debits or improved information on how to improve water efficiency and cut costs.
	However, we do not propose to introduce more fundamental structural reform of the water industry, for example through mandating legal separation of the retail arm of water companies. Given the challenges we are facing to build resilience in the sector, which will require ongoing investment in infrastructure, I am not proposing to make changes which could reduce the attractiveness of the water sector as a low-risk, stable home for investment.
	If we are to deliver our vision for the future of a sustainable and resilient water system we must change the way we all value water. We need to start using water more efficiently, and recognising it as the precious and limited resource it is. We need to build awareness of the connection between water in the home and the condition of local rivers to encourage behaviour change. The White Paper sets out our approach to encouraging more efficient use of water, including through the linkage to the green deal.
	The White Paper is available on the DEFRA website at http://www.defra.gov.uk/environment/quality/water/legislation/whitepaper/

FOREIGN AND COMMONWEALTH AFFAIRS

Afghanistan (Outcomes of Bonn International Conference)

William Hague: On 5 December, Germany hosted and Afghanistan chaired the international Afghanistan conference in Bonn, entitled “Afghanistan and the International Community: From Transition to the Transformation Decade”. The UK, together with over
	100 international delegations, reiterated the international community’s long-term commitment to Afghanistan. I represented the UK.
	The conference conclusions set out a plan for the international community’s long-term engagement with Afghanistan beyond 2014. They included commitments to provide economic support to Afghanistan for the decade after 2014, until Afghanistan becomes economically self-sustainable. The conference also agreed to produce a clear plan for the future structure and funding for the Afghan National Security Forces in advance of the NATO Chicago summit next May. In addition the conclusions set out an agreed set of guiding principles for the reconciliation process and its outcomes. This builds on the recent Traditional Loya Jirga in Afghanistan with support for an inclusive, representative peace process.
	The Afghan Government committed themselves to make further progress on key development priorities, including governance, anti-corruption and rule of law. The Afghan Government also promised to uphold all their international human rights obligations and to protect women’s rights as enshrined in the constitution.
	I reinforced the UK’s long-term commitment to Afghanistan and the aims of the international community post-2014 including development aid and support for the ANSF. I welcomed the political and economic framework agreed at the conference and the importance of regional engagement, building on the successful Istanbul conference in November. I reaffirmed our support for the Afghan Government in upholding human rights, including women’s rights.
	President Karzai was due to visit London immediately after the Bonn conference to sign the UK’s own long-term partnership agreement with Afghanistan. President Karzai had to cancel his visit to the UK because of the tragic sectarian attacks in Afghanistan on 6 December. We had planned to sign the enduring partnership with President Karzai during his visit to London. Instead, we will sign this partnership in the near future. I condemn this attack and the terrorist attacks of 7 December that resulted in the loss of many innocent lives. While we strongly condemn such atrocities, these acts of terrorism will not undermine the commitments made at the Bonn conference by the UK and the international community. We will continue to build on these commitments to see the emergence of a stable and secure Afghanistan where the rights of individuals are respected.

HEALTH

Employment, Social Policy, Health and Consumer Affairs Council

Anne Milton: The health part of the Employment, Social Policy, Health and Consumer Affairs (EPSCO) Council met on 2 December in Brussels. Andy Lebrecht, Deputy Permanent Representative to the European Union, represented the United Kingdom .
	Council conclusions were adopted on:
	closing the gap in health between member states through action on determinants of health, especially nutrition and physical activity;
	non-communicable diseases: prevention and control of respiratory diseases in children; and
	prevention and control of communication disorders in children, including innovative approaches to treatment.
	The Commission provided an update on the health for growth programme and the presidency asked member states to comment on the priorities for the programme. The Commission underlined that the programme would focus on areas where the EU could genuinely add value, in particular, ensuring a smarter investment in health.
	The UK welcomed the intention of the proposed programme, but indicated a preference for it to be brought forward as a decision rather than a regulation. A number of member states also emphasised that the programme should respect the principle of subsidiarity, particularly in relation to the health system elements.
	The Commission gave an update on the suggestion of splitting the pharmacovigilance provisions from the Commission’s recently published information to patients proposals. It confirmed it would positively pursue this approach.
	In addition, Denmark spoke about the plans for its presidency. It confirmed the intention to focus on innovation in health, anti-microbial resistance, and chronic disease (taking diabetes as a model).

Winterbourne View

Paul Burstow: I promised to update the House about ongoing activity in relation to Winterbourne View private hospital.
	The House will wish to note that 10 people employed at Winterbourne View have now been charged with offences of ill-treatment and neglect under the Mental Health Act. They are due to appear in Bristol magistrates court on 15 December. A further three people who have also been arrested on suspicion of causing ill-treatment under the Mental Capacity Act 2005 remain on police bail pending inquiries.
	PricewaterhouseCooper’s report on Castlebeck Care services was published on 25 November and Castlebeck has committed to taking forward all the action points from that report. The report can be found at:
	www.castlebeck.com/docs/pwc_recommendations_ report.pdf
	In October, I advised the House that the Care Quality Commission (CQC) had started its programme of unannounced inspections of services for people with learning disabilities. This review is now well under way—as at 2 December some 76 inspections had been completed. CQC is also carrying out around 1,000 inspections a month which include undertaking inspections where there are concerns that providers may not be meeting the essential safety and quality requirements
	The first five reports from the focused learning disability inspections have been published today and can be found at www.cqc.org.uk/ldreview. We will, of course, ensure that the NHS and local authorities are continuing to take action required to address any concerns raised and review their own commissioning, care planning and oversight arrangements to support improvements and service transformation.
	The results of the CQC inspections programme will feed into the wider departmental review of Winterbourne View. We are still gathering evidence from the serious case review and the NHS serious untoward incident review, and from other investigations and reports.
	The departmental review is actively engaging with people with learning disabilities or autism and challenging behaviour and their families about how services can be improved. Ministers will report findings from the departmental review to Parliament and determine what further action is necessary.
	I will continue to update the House as things develop.

HOME DEPARTMENT

Advancing Transgender Equality

Lynne Featherstone: At the very heart of the coalition Government is a commitment to fairness and equality. Celebrating the diversity of the UK and enabling all to be able to play their full part will lead to a strong society which values all of its citizens. The UK has a record to be proud of in advancing equality for lesbian, gay, bisexual and transgender people but we must not be complacent. We know that challenges still exist and we need to take bolder actions to deal with these issues. Too many transgender people still face outdated prejudice at every stage of their lives, from discrimination in the workplace to tragic incidents of hate crime. This not only blights people’s lives, but undermines the principles upon which this country prides itself. This Government are committed to addressing these issues and advancing transgender equality.
	In March 2011, the Government published “Working for Lesbian, Gay, Bisexual and Transgender Equality: Moving Forward”, which included cross-Government commitments to tear down barriers and advanced equal opportunities for lesbian, gay, bisexual and transgender people in all areas of society—including in schools, at work and in healthcare.
	This document recognised that transgender people face distinct and specific challenges that sometimes need to be addressed separately.
	Today we are publishing “Advancing Transgender Equality: A Plan for Action”, which builds on our programme of work to tackle outdated prejudices and ensure equal chances for everyone whatever their gender identity. It shows a real commitment across Government to take concerted action to tear down barriers to equal opportunities and to build a fairer society. This document also mirrors the aims of the Government’s “The Equality Strategy—Building a Fairer Britain” which aims to address inequality in social mobility, tackling deprivation, developing a fair and flexible labour market, promoting greater participation and opening up public services, and changing culture and attitudes.
	Copies of the action plan have been placed in the House Library and will also be available on the Home Office website: http://homeoffice.gov.uk/equalities/

G6 Meeting (Paris)

Theresa May: The informal G6 group of Ministers of the Interior from France, Germany, Spain, Italy, Poland and the UK held their most recent meeting in Paris on 1 December under the French presidency of the group. The meeting was chaired by the French Interior Minister Claude Guéant. The meeting was divided into two working sessions which were attended by the G6 Ministers of the Interior. Additional guests included the US Attorney-General, Eric Holder; the US Secretary of Homeland Security, Janet Napolitano, and European Commissioner for Home Affairs, Cecilia Malmström.
	The first working session of G6 Ministers and the Commission considered Schengen governance, asylum and itinerant (mobile) criminality. Delegates agreed on the need for a stronger political governance of the Schengen area that would preserve the achievement of the border-free zone while retaining the necessary safeguards. G6 Ministers agreed that member states should retain the possibility of re-imposing internal border controls in the event of a major failure of the external border or a large, unexpected migratory pressure. They called for an early warning mechanism to alert Schengen states in this regard, as well as a strengthening of the Schengen evaluation mechanism. On asylum, the meeting recognised the need for the Common European Asylum System (CEAS) to provide those member states taking part in it with the tools and procedures to respond quickly and effectively to asylum claims. Delegates noted the European Council’s desire to conclude the CEAS negotiations in 2012, and as far as possible before the end of Denmark’s EU presidency. I underlined the need to deal with asylum cases as swiftly as possible and to ensure that decisions were made properly to distinguish between those claims that were genuine and those that were not. On itinerant criminality, Ministers discussed the need to direct more effectively existing EU resources, such as Europol and Eurojust, to tackle the threat of mobile organised crime groups. I raised the issue of metal theft which affects G6 countries as well as the UK.
	The second session, including the US representatives, focused on the recovery of criminal assets and transatlantic data sharing. Delegates discussed the ongoing difficulties associated with recovering the proceeds of organised crime, and agreed on the need for greater international co-operation and more robust asset recovery procedures. The US Attorney-General underlined the importance of civil procedures in asset recovery. I emphasised that financial investigation skills and techniques were not an addition but rather an essential part of the wider armoury of techniques required to investigate criminality. Delegates then discussed the progress of negotiations around the EU-US PNR and EU-US data protection agreements.
	In addition to the two plenary sessions, I spoke about the preparations under way for the 2012 Olympic games, and presented the UK’s plans to reform the European Court of Human Rights under our chairmanship of the Council of Europe. I also held separate bilateral meetings with some of the other heads of delegation to discuss a range of issues including extradition, illegal migration,
	passenger name records and data protection. The next meeting of the G6 is expected to be held in Germany in June.

Provisional Police Funding Announcement

Nick Herbert: I have today placed in the Library my proposals for the aggregate amount of grant to police authorities (referred to in the report as the police core settlement) in England and Wales for 2012-13, for the approval of the House. The indications I gave last year for revenue funding in 2012-13 have remained unchanged and are set out in table 3.
	Today the Department for Communities and Local Government also published proposals for the distribution of formula grant to English local authorities for 2012-13. The Welsh Government will shortly be setting out their proposals for the allocation of funding in 2012-13 for the four police authorities in Wales.
	Overall police settlement
	As set out in the Chancellor’s autumn statement on 29 November, public sector pay awards win average at 1% for the last two years of the spending review period. As a result, the Home Office budget will be adjusted in line with this policy. Subject to any recommendations from the police negotiating board and agreement on staff pay, we expect that this policy should also apply to the police. This revision should not reduce the overall revenue spending power of the police service. I will make decisions on damping levels for these years at a later date.
	For 2012-13 I have applied damping as previously announced at the time of the spending review.
	The total cash reduction in Government funding to the police remains at 5% this year.
	I will continue to provide a specific neighbourhood policing fund for 2012-13. This recognises that neighbourhood policing provides a dedicated, consistent and visible presence in communities. From 2013-14 this funding will be rolled into the police main grant, enabling the new directly elected police and crime commissioners to have full discretion over their funding, recognising their accountability to the communities they serve. In London, the Metropolitan Police Authority received autonomy over this funding from 2011-12, in recognition of the role the Mayor of London and the Deputy Mayor, policing already play. That will continue in 2012-13.
	I win also continue to provide specific funding for counter terrorism policing and have provided relative protection to this budget throughout the spending review period to ensure that critical national counter terrorism capabilities are maintained. Authorities and forces will receive their specific counter terrorism allocations in January.
	In addition to the police core settlement, the Olympic safety and security budget has been prioritised. These provisions are detailed below.
	The introduction of Police and Crime Commissioners
	During 2012-13 the public will elect their first police and crime commissioners in England and Wales. It is the will of the House that police authorities will be
	replaced on the 22 November 2012 with directly elected individuals who will have the statutory duty to deliver an efficient and effective police force, which clearly demonstrates value for money and, above all, delivers policing and community safety services in the local and national interest of the communities within their force area. The precept that police authorities will set for 2012-13, will not be affected by the election of police and crime commissioners in November 2012. Once elected police and crime commissioners will begin to prepare their police and crime plan and budget for 2013-14.
	Some £50 million was set aside for 2012-13 to fund the first elections of police and crime commissioners. This £50 million was added to the police settlement for this specific purpose. Additional funding has been set aside now that the 2012 elections are being held in November. The funding of the elections has had no impact on the amount of funding available to forces over the four-year period of PCC office and we expect it to represent no more than 0.15% of annual police funding.
	The Police Grant Settlement 2012-13
	I have set out below how I propose to allocate the police settlement between the different funding streams in 2012-13.
	
		
			 Table 1: Police Revenue Funding – Proposed Figures for 2012-13 
			  2012-13  £m 
			 Total Formula Funding  
			 Comprising:  
			 Home Office Police Main Grant 4,251 
			 National, International and Capital City Grant (MPA/MoPC only) 189 
			 DCLG General Grant 3,213 
			 Of which council tax (11-12) freeze grant 75 
			 WAG General Grant 151 
			   
			 Total Home Office Specific Grants  
			 Comprising:  
			 Welsh Top-up 13 
			 Neighbourhood Policing Fund (NPF) 338 
			 Counter Terrorism Specific Grant 564 
			 PCC Elections 50(*) 
			 PFI Grant 54 
			   
			 Total Government Funding 8,830(**) 
			 % Cash Change in Total Government Funding -5% 
			 (*)Any additional funding required will be provided from outside the police settlement. (**)This includes a small amount of funding that will form part of a contingency fund, which is not shown in the table above. 
		
	
	Provisional allocations of these grants (with the exception of counter-terrorism funding) for each force in England and Wales for 2012-13 are set out in table 3.
	Neighbourhood Policing Fund
	The neighbourhood policing fund specific grant will continue until 2013-14, when directly elected police and crime commissioners will be in place. Funding totalling £338 million in 2012-13 win be made available. Approximately 90% of the grant will be ring-fenced for police and community support officers (PCSOs)—
	contributing up to 75% of their salary costs. The remaining 25% will need to be match-funded by the police, councils, businesses and other organisations. This does not apply to the Metropolitan Police Authority/Mayor’s Office for Policing and Crime which has had full discretion on the spending of this funding from 2011-12. From 2013-14 this fund will be consolidated into police main grant.
	Counter Terrorism
	Counter-terrorism has been prioritised to ensure that the police will have the necessary resources to respond to the changing demands posed by the terrorist threat. We have allocated £564 million to support counter terrorism policing in 2012-13.
	Forces will be notified of their individual allocations in early January. For security reasons, these allocations will not be available in the public domain.
	Private Finance Initiatives Grant
	Specific funding will be given to cover the costs of police private finance initiative projects which are currently operational. This funding was added to the police settlement for this specific purpose. The Home Office will also support the two police PFI projects that are currently in procurement, and which are not yet operational.
	National, International and Capital City Grant
	The national, international and capital city grant will be paid to the Metropolitan Police Authority/Mayor’s Office for Policing and Crime in 2012-13 when the funding will be £189 million.
	Council Tax Freeze
	The Government announced a council tax freeze in England for 2011-12 which all police authorities in England accepted. As a result, they are all receiving a grant equivalent to a 2.5% increase in their 2010-11 precept. This grant has been baselined and will continue to be paid to all police authorities in each year of this spending review period.
	The Government have recently announced help for local authorities in England, including police authorities, to freeze their council tax for a further year. Police authorities which decide to freeze or reduce their council tax in 2012-13 will receive additional one-off funding, equivalent to raising their 2011-12 precept by 3%.
	Council tax referendums
	The Localism Act 2011 includes powers, already used, to abolish capping in England and to introduce arrangements for council tax referendums. A referendum will take place if an authority, including a police authority, proposes a percentage increase in council tax that exceeds the level agreed by the House of Commons. These provisions will be implemented for 2012-13 and the Secretary of State for Communities and Local Government, in consultation with the Home Secretary, has today given an indication of the principles he is minded to propose for 2012-13. After considering any representations from authorities he will set out the final principles in a report to the House and seek approval for these in parallel with the final report on the local government finance settlement.
	In Wales, council tax capping is the responsibility of Welsh Ministers.
	Other funding
	Police Capital
	I am minded to amend the capital allocations for police authorities in order to support the establishment of the National Police Air Service. I will consider carefully any representations on this matter before taking my decision in time for the final settlement debate in February 2012. This change would mean that the proportion of police capital that goes to the NPAS would be increased to £10.8 million in 2012-13—£6 million more than I suggested this time last year. These proposed figures are set out in table 2.
	
		
			 Table 2: Proposed Division   o  f Police Capital Between Funding Streams 
			  2012-13  £m 2013-14  £m 2014-15  £m 
			 Capital Grant 118 106 109 
			 National Police Air Service 11 13 10 
			 Special Grant Capital 1 1 1 
			 Total 130 120 120 
		
	
	I still intend to allocate the majority of capital funding directly to police authorities and the Metropolitan Police Authority/Mayor’s Office for Policing and Crime, who will all receive the same percentage change in funding. I will also continue to maintain a capital contingency. These proposed allocations are set out at table 4.
	Olympic Safety and Security
	Delivering a safe and secure games remains a priority for the Government. With eight months to go, the policing and wider security programme is progressing well, with many aspects already operational.
	The Government announced last year that £600 million will be available for safety and security during the London Olympics in 2012. However, the Government are confident they can deliver this for around £475 million.
	
		
			 Table 3: Provisional Revenue Allocations for England and Wales 2012-13 
			  2012-13 
			 Police Authority HO  Core NPF Welsh Top-up WAG CLG (including CT freeze) 
			  £m £m £m £m £m 
			 Avon & Somerset 112.7 7.3 0.0 0.0 62.5 
			 Bedfordshire 40.8 2.7 0.0 0.0 28.2 
			 Cambridgeshire 50.0 3.6 0.0 0.0 29.0 
			 Cheshire 64.3 4.8 0.0 0.0 51.6 
			 City of London 30.2 1.3 0.0 0.0 27.3 
			 Cleveland 47.5 2.9 0.0 0.0 44.4 
			 Cumbria 30.5 2.3 0.0 0.0 34.9 
			 Derbyshire 65.0 3.7 0.0 0.0 44.5 
			 Devon & Cornwall 110.5 7.5 0.0 0.0 70.3 
			 Dorset 42.4 3.2 0.0 0.0 21.3 
			 Durham 44.3 3.3 0.0 0.0 42.4 
			 Dyfed-Powys 32.1 1.6 6.3 15.7 0.0 
			 Essex 109.5 7.2 0.0 0.0 63,6 
			 Gloucestershire 36.2 3.2 0.0 0.0 22,2 
			 Greater London Authority 1051.6 101.3 0.0 0.0 854.5 
		
	
	
		
			 Greater Manchester 230.2 17.3 0.0 0.0 209.8 
			 Gwent 44.7 2.9 0.0 33.0 0.0 
			 Hampshire 128.1 7.6 0.0 0.0 72.4 
			 Hertfordshire 73.9 5.3 0.0 0.0 43.5 
			 Humberside 69.5 4.7 0.0 0.0 53.3 
			 Kent 109.5 8.0 0.0 0.0 78.8 
			 Lancashire 105.7 8.2 0.0 0.0 89.2 
			 Leicestershire 67.3 4.7 0.0 0.0 46.4 
			 Lincolnshire 39.8 2.9 0.0 0.0 24.2 
			 Merseyside 127.0 9.8 0.0 0,0 127.6 
			 Norfolk 53.7 3.9 0.0 0.0 32.4 
			 North Wales 46.2 3.3 6.5 24.8 0.0 
			 North Yorkshire 43.9 3.4 0.0 0.0 31.3 
			 Northamptonshire 45.2 3.0 0.0 0.0 28.1 
			 Northumbria 115.0 8.9 0.0 0.0 120.1 
			 Nottinghamshire 80.7 5.5 0.0 0.0 54.9 
			 South Wales 92.7 6.7 0.0 77.6 0.0 
			 South Yorkshire 102.7 6.6 0.0 0,0 90.1 
			 Staffordshire 68.6 4.5 0.0 0,0 47.8 
			 Suffolk 42.8 3.1 0.0 0.0 26.5 
			 Surrey 65.0 4.4 0.0 0.0 35.7 
			 Sussex 101,1 7.2 0.0 0.0 64.2 
			 Thames Valley 147.0 9.1 0.0 0.0 87.4 
			 Warwickshire 32.7 2.8 0.0 0.0 19.8 
			 West Mercia 68.6 5.3 0.0 0.0 51.1 
			 West Midlands 252.9 15.9 0.0 0.0 213.5 
			 West Yorkshire 179.3 14.3 0.0 0.0 143.4 
			 Wiltshire 38.7 2.8 0.0 0.0 24.8 
			 Total England and Wales 4440.1 338.0 12.8 151.0 3213.2 
		
	
	
		
			 Table 4: Indicative Capital Allocations for England and Wales 
			     
			 Police Authority 2012-13 2013-14 2014-15 
			  £m £m £m 
			 Avon & Somerset 2.6 2.3 2.4 
			 Bedfordshire 1.1 1.0 1.0 
			 Cambridgeshire 1.3 1.2 1.2 
			 Cheshire 1.7 1.5 1.5 
			 City of London 0.9 0.8 0.9 
			 Cleveland 1.3 1.2 1.2 
			 Cumbria 0.9 0.8 0.9 
			 Derbyshire 1.6 1.4 1.5 
			 Devon & Cornwall 2.8 2.5 2.6 
			 Dorset 1.1 1.0 1.0 
			 Durham 1.3 1.1 1.2 
			 Dyfed-Powys 0.8 0.7 0.8 
			 Essex 2.4 2.2 2.2 
			 Gloucestershire 1.0 0.9 0.9 
			 Greater Manchester 6.0 5.4 5.5 
			 Gwent 1.2 1.0 1.1 
		
	
	
		
			 Hampshire 3.0 2.7 2.8 
			 Hertfordshire 1.5 1.4 1.4 
			 Humberside 1.8 1.6 1.7 
			 Kent 2.8 2.5 2.5 
			 Lancashire 2.8 2.5 2.6 
			 Leicestershire 1.8 1.6 1.6 
			 Lincolnshire 1.0 0.9 0.9 
			 Merseyside 3.5 3.1 3.2 
			 Metropolitan 31.3 28.1 29.0 
			 Norfolk 1.4 1.2 1.3 
			 North Wales 1.2 1.1 1.1 
			 North Yorkshire 1.1 1.0 1.0 
			 Northamptonshire 1.1 1.0 1.0 
			 Northumbria 3.3 2.9 3.0 
			 Nottinghamshire 1.9 1.7 1.8 
			 South Wales 2.5 2.3 2.3 
			 South Yorkshire 2.8 2.5 2.6 
			 Staffordshire 1.8 1.6 1.6 
			 Suffolk 1.1 1.0 1.0 
			 Surrey 1.6 1.4 1.5 
			 Sussex 2.3 2.1 2.2 
			 Thames Valley 3.8 3.4 3.5 
			 Warwickshire 1.1 1.0 1.0 
			 West Mercia 1.9 1.7 1.7 
			 West Midlands 6.3 5.7 5.9 
			 West Yorkshire 4.6 4.2 4.3 
			 Wiltshire 1.0 0.9 1.0 
			 Total England and Wales 118.2 106.0 109.3

JUSTICE

Abolition of Committals

Kenneth Clarke: It is in the interests of victims and witnesses, and of the criminal justice system generally, that court procedures should be made as efficient as possible, for example by cutting out unnecessary court hearings. More than 10 years ago, committal proceedings were abolished in indictable-only offences, and replaced by a new “sending” procedure. The Government have decided that the time has come to complete that reform by extending it to offences triable either way. This will enable the Crown court to manage such cases from an earlier stage, and facilitate efforts to encourage defendants who intend to plead guilty to do so sooner.
	The change will be effected by bringing into force schedule 3 to the Criminal Justice Act 2003 on a phased basis from April 2012. Following the practice adopted when the existing sending procedure in section 51 of the Crime and Disorder Act 1998 was first introduced, commencement will initially be limited to certain
	geographical areas, which will be announced later. Subject to a satisfactory assessment of the first phase, the intention is to complete implementation over the next year.
	The Government believe that this reform has the potential to contribute to their aim of reforming and improving the criminal justice system.

NORTHERN IRELAND

Independent Reviewer of the Justice and Security (Northern Ireland) Act 2007 (Annual Report)

Owen Paterson: I have arranged for copies of the fourth report of Robert Whalley CB, Independent Reviewer of the Justice and Security (Northern Ireland) Act 2007 (the “2007 Act”), to be laid before Parliament.
	This fourth report provides an assessment of the operation of sections 21 to 32 of the 2007 Act and the procedures adopted by the Brigade Commander 38 (Irish) Brigade for receiving, investigating and responding to complaints. The report covers the period 1 August 2010 to 31 July 2011.
	The report highlights the continuing security threat posed by residual terrorist groups, the activity of organised criminals and incidents of public disorder. The reviewer comments on the importance of the powers under the 2007 Act in dealing with this broad range of security-related threats, and therefore recommends that the powers be retained for a further year.
	The reviewer states that the residual terrorist threat has continued on broadly the same level as 2010, but there have been positive signs of suppression of activity. He notes that the number of persons stopped under the 2007 Act has increased significantly but that overall stop activity by the PSNI has fallen by 36% over the last year. The reviewer welcomes the authorisation procedure for the use of stop-and-search powers which the Government are introducing through the Protection of Freedoms Bill. He comments on the importance of cross-border co-operation and points to the activity by An Garda Siochana, which has led to a number of arrests.
	The report also reflects on the regrettable public disorder which we saw in Northern Ireland earlier this year and the attacks on the police, and the subsequent operational need for powers under the 2007 Act, such as stop and question and entry of premises, as part of the police response. The reviewer also acknowledges the significant reduction in complaints to the military over the last year.
	The Chief Constable and the Brigade Commander 38 (Irish) Brigade have both welcomed the independent reviewer’s report and the recommendations made. I would like to thank Robert Whalley for his work and for the recommendations contained in this report. I will consider them carefully.

TRANSPORT

Court Notification of Drink-Drive Offences

Michael Penning: In conjunction with my hon. Friend the Under-Secretary of State for Justice, the Member
	for Huntingdon (Mr Djanogly), I wish to inform the House of serious errors that have been identified in the way in which data on drink drive convictions are shared between the police, courts and the Driver and Vehicle Licensing Agency (DVLA).
	At the end of last year, I asked the DVLA to review communication between the courts and the DVLA. As a result of these investigations it became clear that the alcohol levels for some drink-driving convictions were either not provided to the DVLA by the courts, or were inconsistent when there was a delay between the court sending the information and the reconciliation of this information by DVLA. These errors have been happening for more than 20 years. As a result, in some cases, driving licences were reissued to individuals whose ban had expired, but without them undergoing legally required medical tests.
	As soon as the problem was reported to me in August 2011, DVLA put in place manual checks so that any court notification received at DVLA without an alcohol reading was immediately investigated and no licences were re-issued without the alcohol level being provided. In addition, DVLA have worked to identify cases where information was incomplete in the backlog of data since 1991.
	The courts and DVLA are now implementing IT changes which will mean that their systems will not allow cases to be processed at either the courts or DVLA unless valid alcohol readings are provided. Furthermore, new operational guidance has been issued to staff who deal with these cases.
	Drivers convicted of drink-driving offences with more than two and a half times the permitted legal alcohol limit are regarded as high-risk offenders (HROs). The law requires that such convicted drivers are required to prove their medical fitness before they can be re-licensed at the end of their disqualification period.
	As a result of the review DVLA has undertaken, I was informed that some convicted drivers who should have been treated as HROs have been granted a driving licence at the end of their disqualification on the basis of their own declaration of health, without undertaking the required medical assessment.
	In total, 265,225 driver records have been found to be missing the relevant information on alcohol levels. Correct alcohol levels have now been obtained for 50,330 of these. We have identified within this group 3,895 drivers who should have been treated as HROs—and therefore should have undergone a medical assessment—before being granted a licence following their disqualification. These drivers present a potential risk to road safety and are being contacted so that they can undergo a medical assessment immediately. Those who fail to comply, or cannot demonstrate their medical fitness to drive, will lose their entitlement to drive.
	The Ministry of Justice, Her Majesty’s Courts and Tribunals Service, The Scottish Courts Services and the police are working together urgently to identify the correct alcohol readings for a further 28,830 records. Any further HROs identified from these will also be required to undergo a medical assessment.
	We have identified that of the 265,225 cases, some 53,028 relate to convicted drivers who have not yet applied to renew licences. These individuals do not therefore pose an immediate road safety risk. Their records have been blocked to ensure that if they do
	apply for a licence in future any identified as being HROs will have to undergo the medical assessment before a licence can be issued.
	Records retention policy and the time limits set under the terms of the Rehabilitation of Offenders Act 1974, means that it will not be possible to act upon the alcohol readings in the remaining 133,037 cases identified. We cannot therefore say how many of these drivers would have been HROs at the time of their conviction.
	It is with great regret that I inform the House that we have identified two cases in 1996 and 2006 where a driver who was issued a licence without first proving their medical fitness to drive, has subsequently caused death while driving under the influence of alcohol. Every death on the road is a tragedy and we have the deepest sympathy for anyone affected by the actions of these drink-drivers. It is not possible to say whether the drivers in these cases would have got their licences back following a medical examination. Every effort is being made to contact the victims’ families to inform them and to ensure they receive full and proper support.
	I can assure the House that we regard road safety and ensuring convicted drivers are treated correctly as of critical importance. Everything possible will be done to take action, where we are legally able, against those who represent a risk to other road users. The Under-Secretary of State for Justice and I have ensured that immediate action has been taken to deal with this issue and to make sure it does not happen again. I must make clear that this investigation is continuing but due to the complexity of accessing very old court data, final figures will not be known for a number of months.

Bus and Community Transport

Norman Baker: I am pleased to announce today a £60 million package of bus measures to improve buses and community transport coupled with the £30 million investment to improve the environmental performance of the bus fleet that was announced by the Chancellor in the autumn statement, this is a £90 million boost for our buses.
	A new £50 million better bus area fund will provide grants of up to £5 million to a minimum of 10 local authorities working in partnership with local bus operators for them to spend in 2012-13. The aim of the fund is to increase bus patronage in busy urban areas, and the Department’s aims of creating growth and cutting carbon.
	Authorities wishing to bid for bus funding will be asked to submit bids in February to allow the Department to make awards by the end of March. Detailed bidding guidance will be placed on the departmental website shortly.
	To support further the establishment and development of community transport, I am also making available £10 million to be distributed to 76 local authorities in England, outside London, by formula; this is a repeat of the Supporting Community Transport Fund announced in March 2011. Letters will be sent to eligible local authorities in the new year, with details of the timing of payments. This comes on top of the £10 million distributed back in March 2011.
	As well as these two new funds, last week the Chancellor announced £25 million of funding for environmental improvement to buses. £20 million of this will be available
	to bus operators to help them buy low-carbon emission buses through a further round of the green bus fund, for which detail bidding guidance will be published shortly. The remaining £5 million will allow older buses in London to be retrofitted with pollution-reducing equipment to help deliver air quality improvements in the capital. Together with additional funding from Transport for London, the total amount being committed is £10 million. Not only should this deliver a step change in the environmental performance of buses in the capital, but it will help promote jobs across the UK in the companies that supply clean vehicle technology.

WORK AND PENSIONS

Employment, Social Policy, Health and Consumer Affairs Council

Chris Grayling: The Employment, Social Policy, Health and Consumer Affairs Council met on 1 December 2011 in Brussels. I represented the United Kingdom.
	There were two negotiations at this Council. In the first negotiation, the presidency secured a general approach on a package of amendments to Regulation (EC) No 883/2004 on the co-ordination of social security systems. One of the proposals in the package would take UK income support out of the regulations. Some member states expressed concerns at some elements but accepted the package in the spirit of compromise. I intervened to stress that a broader policy debate was required at the political level on mechanisms to prevent benefit tourism.
	In the second negotiation, the presidency failed to reach political agreement on extensions of the crisis derogations to the European globalisation adjustment fund. I intervened to state that in our view EGF did not add value and that we could not accept any compromise amendments. A blocking minority which included the United Kingdom held out comfortably during the vote.
	There was a policy debate on the implementation of the Europe 2020 strategy in the field of employment and social policy. The debate was informed by three
	papers; the Commission’s annual growth survey (including the joint employment report); a set of conclusions on the European semester; and an opinion of the Social Protection Committee on the social impact of the crisis. I intervened to welcome the annual growth survey and emphasised the need for all member states to have a credible and determined approach to fiscal consolidation and, structural reform, including through deeper growth-friendly labour market reforms. I also stressed that it was vital that the EU did not take any counter-productive measures which might actually end up having the effect of reducing employment. I suggested that Ministers bring specific ideas to the February EPSCO for further discussion.
	There were progress reports on three topics; minimum health and safety requirements regarding the exposure of workers to the risks arising from physical agents (electromagnetic fields); the pregnant workers directive; and the equal treatment of persons irrespective of religion or belief, disability, age or sexual orientation.
	Ministers adopted three sets of Council conclusions; ageing as an opportunity for the labour market and the development of social services and community activities; the review of the implementation of the Beijing platform for action; and the follow-up of the first European semester and thematic surveillance in employment and social policies.
	The Commission presented a report on the functioning of the transitional arrangements on the free movement of workers from Bulgaria and Romania.
	Under any other business the presidency and Commission reported on the first annual convention of the European platform against poverty and social exclusion. The presidency provided information on the legislative proposals in the area of migration (single permit, intra-corporate transfers and seasonal workers) and reported on the informal meeting of Ministers for family and gender equality. The Commission provided an update on the review of the working time directive; the posting of workers directive; and the state of play on the European debate on women on company boards.